The implied warranty of fitness for a particular purpose requires reliance by the buyer
on the seller’s expertise.
a. True
b. False
Agents are liable to principals for negligence in performing their duties.
a. True
b. False
Limited partners can consult and advise with the general partner and still retain limited
liability.
a. True
b. False
An auditor for a company cannot also perform appraisal functions.
a. True
b. False
What is the difference between formal rulemaking and informal rulemaking?
a. Formal requires notice while the latter are simply immaterial changes to rules.
b. Formal requires a public comment period and informal rulemaking does not.
c. Formal requires public hearings and information does not.
d. Formal requires Government in the Sunshine Notices and informal does not.
e. none of the above
Walt’s Pool World’s fax to Pat’s Pumps: “I’ll take 10 4 hp pool pumps @ $175 each.”
Pat’s Pumps’ return fax: “Ok. Will deliver tomorrow AM.”
Pat and Walt:
a. do not have a contract because the faxes will not satisfy the statute of frauds.
b. do not have a contract because of the mirror image rule.
c.had a contract when Pat’s fax was sent.
d.had a contract when Pat’s fax was received.
Custom has no impact on international law.
a. True
b. False
All Regulation D offerings can be sold through advertising.
a. True
b. False
A personnel manual:
a. can constitute a contract in an employment-at-will relationship.
b. can disclaim any promises made therein.
c.is never a contract.
d.none of the above
Quantity discounts violate the Robinson-Patman Act.
a. True
b. False
Advertising by lawyers:
a. can be prohibited in the interest of protecting the public.
b. enjoys no First Amendment protections.
c. can be regulated but not prohibited.
d. none of the above.
Congress passed a law prohibiting any organization from spending money on ads
against ballot propositions. The legislative history shows that Congress found that
organizations spend far too much money on these ads and regular citizens’ voices
cannot be heard and disseminated against such powerful communication. The statute:
a. is an unconstitutional violation of the First Amendment.
b. is constitutional so long as the factual findings are adequate.
c. is constitutional because there are no money limits, only a prohibition.
d. is constitutional if it applies to corporations as well as nonprofits.
e. none of the above
The Army Corps of Engineers has proposed the construction of a dam that will be of
substantial benefit in Tennessee in terms of economic development. The dam will also
destroy the natural habitat of an endangered species: the snail darter. The project:
a. does not require an EIS since the EPA is not involved in the project.
b. will require an EIS since the Army is involved.
c.cannot be completed under the Environmental Protection Act.
d.none of the above
Administrative agencies are created by some legislative body.
a. True
b. False
The Equal Credit Opportunity Act applies only to consumer transactions.
a. True
b. False
The Equal Employment Opportunity Act and the Pregnancy Discrimination Act are
amendments to Title VII.
a. True
b. False
Discuss the propriety of each of the following actions by management:
a. offering employees a bonus of one week’s vacation just prior to an election
b. threatening bankruptcy if a union is approved
c. sending a management person to a labor meeting
The I-9 is the green card.
a. True
b. False
The subprime lending market is also called the predatory lending market.
a. True
b. False
Which employees are exempt under FLSA?
a. agricultural employees
b. professions of law and medicine
c.executives and administrators
d.All of the above are exempt.
Trade secrets must be registered to enjoy protection.
a. True
b. False
Shares of stock issued pursuant to a corporate reorganization must be registered.
a. True
b. False
Informal rulemaking is not permitted for promulgation of rules.
a. True
b. False
State supreme courts have original jurisdiction in some circumstances.
a. True
b. False
A foreign country engaging in commercial transactions in the United States is not
protected by the doctrine of sovereign immunity for those transactions.
a. True.
b. False
A manager at a chemical weapons plant discovered that toxic by-products from
chemical manufacturing at the plant are simply put in barrels and stacked near the
boundary lines of the plant property. Children in the homes near these boundaries have
an unusually high rate of kidney disease. The manager does not want to disclose the
barrels’ contents because he will lose his job and the town will lose its major employer.
Which of the following ethical tests would support the manager’s decision?
a. WallStreetJournalmodel
b. ethical relativism
c.Blanchard/Peale model
d.”front page of the newspaper test”
The CISG is another name for the UCC.
a. True
b. False
The FCPA does notmake which of the following acts criminal?
a. giving money to a foreign political candidate
b. giving a gift of clothing to a foreign political official
c. giving money as a means of preventing action from being taken
d. giving a payment for facilitation
A small claims court:
a. is a court where diversity cases are heard.
b. is a court where no attorneys are used.
c.is a general jurisdiction court.
d.is part of the federal system.
is replacing as the preferred method of business dispute resolution.
a. Litigation; arbitration
b. Arbitration; mediation
c.Mediation; arbitration
d.Litigation; mediation
Which of the following would not be a basis for a negligence product liability suit?
a. a highly explosive gas tank installed in a car with the manufacturer’s prior knowledge
of its dangers
b. the continued sale of sunglasses to baseball teams knowing the sunglasses shatter
c.the continued sale of gas pipelines to utilities in the Southwest after explosions caused
by peculiar interactions of the pipe with the soil and heat
d.All of the above would be negligence product liability suits.
Ralph Quest is an air traffic controller who has had significant problems with high
blood pressure. He has changed his diet, takes medication, and the problem persists. His
doctor has recommended that Quest find other employment because his job is causing
his high blood pressure and continuing to work at the job will lead to a massive heart
attack. Ralph has no training for any other jo
b. Which of the following statements is true?
a. Ralph has a job-related injury that will be covered under workers’ compensation.
b. Ralph has a medical problem that will not be covered.
c.Ralph will need to have a heart attack before he qualifies as disabled.
d.none of the above
Jane Stevenson was removed as head cheerleader from her high school cheer squad
because she violated one of the school rules by drinking alcohol on the team bus as the
team and cheer squad traveled to an away game. Jane feels she has an explanation and
defense for what happened. Which of the Constitution might provide her with a review
of her dismissal as head cheerleader?
a. States rights
b. Substantive due process
c. First Amendment
d. Due process
Improper packaging that results in an injury can be a basis for product liability.
a. True
b. False
In the Nestle case, what ethical issues existed?
An unincorporated association is a group that acts as an entity but has no legal
existence.
a. True
b. False
Name three types of business arrangements governed, at least in part, by private law.
Draw the pyramid of laws and label each level of the pyramid with the appropriate
source of law.
Gwen Knight is a CPA who works in the internal controls area of Winthrop Industries, a
NASDAQ company.
Gwen has discovered that there are problems with the company’s processing of invoices
for payments that allow the postponement of those payments. The company is 18
months behind on some payments. Gwen reports the problems to her supervisor. Gwen
assumes that her supervisor will notify the head of internal audit and take the
appropriate corrective steps. On her next performance evaluation, done three weeks
later, Gwen receives her first poor rating in 10 years. She is put on a sixmonth
performance improvement plan. Discuss Gwen’s position, rights, and any protections
she may have.
In #98 above, suppose that the fax from Barnes & Noble read:
Please ship immediately via priority mail – 10 Copies of NOBODY FIXES REAL
CARROT STICKS ANYMORE.
Price: $6.00 per book Shipping: $3.95 total
Woodchip ships the books at the $6 price but ships them via two-day UPS at a price of
$5.95. Is there a contract?
Discuss the procedural changes made as a result of Arizonav.Gant.
Give an example of an executive order.
Discuss whether a contract to solicit names of potential subscribers using pop-up
Internet ads for a newspaper is considered goods or services under the UCC.
Chicago Roller Skate has purchased an inexpensive indoor rollerskate from a
Taiwanese manufacturer. Brookfield Athletic Shoes alleges that its patent for its unique
wheel plate is infringed by the Taiwanese model. Discuss the issues of infringement as
well as the issues of international protections of patented products.
Google was asked by the Justice Department to turn over information about users who
were running searches for child pornography. Google refused to turn over the
information to the federal government. Discuss the ethical issues Google was grappling
with in making its decision.
Draw a chart comparing the formation, liability, taxation, and management of
partnerships, limited partnerships, corporations, and limited liability companies.
Name and describe three types of motions that can be made prior to trial.
Discuss why there may be liability for writers of letters of recommendation that fail to
include relevant employment-related information
AOL use the phrase “You”ve got mail!” to signal its customers that there is mail in their
electronic accounts. AT&T began using the phrase, “You have mail!” for its customers.
AOL brought suit against AT&T for trademark infringement. Has there been
infringement?
Elizabeth Drake worked as a nanny for Kimba and Zeus Baird and cared for their 3
children each day from 8 AM until 5:30 PM. At 10:00 AM each day, Elizabeth drove
the Bairds’ 3-year-old daughter to pre-school. On the way to the pre-school last
Tuesday, Elizabeth failed to stop at a stop sign and struck a UPS truck. Could UPS
make a claim against the Bairds?
Why are the terms “cellophane,” “aspirin,” and “thermos” generic? What changes a
tradename or trademarked item to a generic term?
Stock transfer restrictions are void.
a. True
b. False
Philbrook is a teacher employed by the Ansonia School District. He is a member of the
Worldwide Church of God.
His church holds certain holy days and Philbrook has missed six school days each year
for such holy days. The teachers’ union has negotiated a contract that permits the
following leaves: 18 days per year for sickness (up to 180 days can be cumulated, 5
days for a family death, 1 day for a wedding, 3 days for national meetings, and 3 days
for personal leave. The contract did not allow the use of these days for other reasons.
Philbrook was charged with having taken unauthorized, unpaid leave for his six holy
days. He filed an EEOC complaint. Who will win?